Bank of America Backs 4% Crypto Allocation as Retail Takes Losses
Bank of America now supports a 1% to 4% crypto allocation for wealth management clients, contrasting with retail investors absorbing recent market losses.Summary
Bank of America (BofA) has officially endorsed a 1% to 4% allocation to digital assets for its wealth management clients, enabling over 15,000 advisers to proactively recommend regulated crypto products like Bitcoin ETFs starting January 5, 2026. This move reflects growing client demand and aligns with a broader institutional trend, as firms like Morgan Stanley and Fidelity also suggest crypto allocations. However, this institutional embrace occurs as retail investors, who hold about 75% of spot Bitcoin ETF assets, are suffering significant losses following Bitcoin's drop from its peak, with new altcoin-heavy ETFs also performing poorly. Experts suggest that ETF wrappers may give smaller investors a false sense of security, while institutional ownership is increasing as retail capitulates.
(Source：BeInCrypto)